Hard Money Lenders Missouri: Fast and Flexible Loans
2 min read
Selling or buying property when managing real estate financing in Missouri can be challenging, especially when traditional loans aren’t an option. A hard money loan might be the solution if you need quick funding with flexible terms. These loans are particularly useful for real estate investors in competitive cities like St. Louis and Kansas City.
Hard money lenders offer an alternative route to secure funds based on the property’s value rather than the borrower’s creditworthiness. Whether you’re flipping homes in Springfield or investing in rental properties in Columbia, understanding how hard money loans work can help you make informed decisions about your real estate ventures.
Editor’s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to consult your own advisor.
What is a hard money lender?
A hard money lender is a nontraditional lender that offers short-term loans secured by real estate. They typically work with clients such as house flippers and real estate investors who need quick access to funds. Hard money lenders determine loan amounts based on the estimated value of the property after renovations, which is the after-repair value (ARV).
Interest rates for hard money loans are generally higher than those of traditional loans, often including additional fees. If a borrower fails to repay the loan, the lender can foreclose on the property. This type of financing is ideal for those who need immediate capital and have a clear exit strategy to repay the loan.
Hard money loans typically have higher interest rates, ranging from 8% to 15% or more, and shorter repayment periods, usually between 6 to 24 months. Additional costs can include origination fees, closing costs, and points, which are a percentage of the loan amount paid upfront.
How does a hard money loan work?
Hard money loans in Missouri offer unique benefits for real estate investors. Here’s what you need to know:
